Today, Ted Mosby borrows $250,000 to buy a house in the suburb of New Jersey. The bank offers him an adjustable-rate mortgage that carries a 1.0 percent annual interest rate for the first 3 years. After that the rate will change annually to reflect market conditions. The annual cap is 2.5%, i.e., the argest increase in any year is 2.5% and the highest possible annual interest rate is 3.5%. The loan erm is 30 years and payments are made monthly. What is initial mortgage payment? (3pt) 3. What is the remaining balance on the loan after three years? (6pt) .. What is the greatest mortgage payment Ted might owe when the interest rate resets at the beginning of the 4 th year? ( 6pt) Suppose Mosby could only afford to pay $500 per month and has agreed to pay the remaining loan balance at the end of the loan term in the form of a single balloon payment. Assume the annual interest rate from year 1 to year 30 is fixed at 2%. What will be the amount of the balloon payment 30 years from today? (6pt) (Hint: Step 1, find the present value of the monthly payments first. Step 2, compound the difference between the principal and the present value of the monthly payments to the end of the loan term.)